Indexing Tuition and Fees to Cost of Education: Implications for State Policy.

Viehland, Dennis; And Others

Considerations for establishing a system for indexing tuition and fees to the cost of education and implications for state policy are examined. It is suggested that the attraction of the indexing approach to tuition arises from a number of causes including the upward pressure on tuition created by changing demographic and fiscal conditions. Results of a survey of current state policies for determining tuition indicated that 30 of the states do not have an established policy for determining tuition, three of the states have established policies but use no particular formula to determine tuition, and 17 states have established policies that index tuition to a specific measure. Indexing insures that a fixed portion of cost increases will be covered from student sources. The cost of education is determined according to set accounting practices, and the student is charged a set percentage of this cost. Elements that should be included in the computation of the cost of education or instruction and the need for cost studies are briefly considered. Differentiating the actual percentages to be charged by level, student residency status, and type of institution is considered. Implications of using an indexing system on state policy issues are considered in relation to: state budgeting, institutional autonomy, cost containment, impact on enrollment, cost study requirements, cost behavior, equity, and access. (SW)